OP SIX COMMENTS ON 2016 SIX-YEAR PLANS
September 1, 2016
General for All Institutions:
Is there some threshold beyond which the institution doesn’t see itself going with regard to the percentage of tuition revenue being used for financial aid? What is realistic?
The university has not set a target for the percentage of tuition revenue to be used for student financial aid. However, the use of tuition revenue for financial aid has been an important part of our strategy and commitment to ensure that W&M remains affordable for our students, particularly those from lower- and middle-income families in Virginia. A recent study by NACUBO indicated that for the 2015-2016 academic year, the average discount rate for incoming students at private institutions exceeded 40 percent. As a public institution, state general fund support for E&G programs coupled with state support for in-state, undergraduate financial aid reduces the need to redirect tuition revenue to student aid. Based on current levels of state funding, we would expect to allocate no more than 25% of our undergraduate tuition revenue to support undergraduate aid. However, as economic conditions fluctuate, the level of state support and changes in families’ financial needs may require us to re-evaluate the extent to which tuition revenue is needed for financial aid versus other institutional priorities.
CWM
How realistic is it to do a 6% salary increase in FY2018? If salaries are not part of the equation what impact will it have on a tuition increase rate? When will CWM decide?
William & Mary’s Board of Visitors continues to support competitive faculty salaries as one of its top priorities for the university. The State Council of Higher Education for Virginia (SCHEV) finds that average salaries for W&M faculty continue to fall well short of the 60th percentile goal of our peer group. This gap persists despite notable increases in faculty salaries over the last 3 fiscal years. In FY2013, W&M’s salaries were 20% below the 60th percentile goal. Today, SCHEV estimates that we still fall 14% under the goal. Given the persisting gap, we find the 6% salary increase for faculty in FY18 set forth in our six-year plan to be realistic based on the revenue assumptions included therein. If salaries were not increased in FY18 and given no other unanticipated incremental costs, tuition increases for FY18 could be lowered. The Board is actively engaged in these discussions and is expected to take actionbeginning with its November 2016 board meetings. The final FY18 budget will be set by the Board at its April 2017 meeting.
What is CWM’s involvement with the Chesapeake Economic Development Center?
The Chesapeake Bay Economic Development Center, proposed in partnership with Old Dominion University, would bring together the expertise of W&M, VIMS, and ODU as a resource to attract new businesses to the region. The collaborative effort will enhance existing regional infrastructure by providing businesses with the scientific, analytical and educational resources needed to test new technologies and expand business opportunities in areas prone to frequent river or coastal flooding. VIMS’ on-going research in water quality coupled with W&M’s growing activitiesin data analytics will complement ODU’s efforts to build training programs for businesses interested in expanding/adapting goods and services that are responsive to changing environmental conditions in coastal regions.
Have there been any discussions with Richard Bland College regarding assisting them with back office operations?
In July 2015, W&M worked with Richard Bland College to assess its staffing levels and its administrative and financial processes. Since then, RBC has hired additional personnel and reports that they are almost fully staffed in the areas of finance and administration. RBC has also worked to improve its use of electronic systems, most recently completing an update to its financial systems. While clearly still a work in progress, RBC continues its efforts to improve all of its back office operations. W&M provides no direct support, but continues to work with RBC staff to provide ad-hoc guidance and share best practices on operational issues.